In early 2014 the top of the global cement producer charts looked very different to how it does today. The big four multinationals, Lafarge, Holcim, HeidelbergCement and Cemex, were clearly out in front and ahead of the rest of the global top 10. While there was discrepancy in their sizes, the largest, Lafarge (224Mt/yr) had just over twice the cement capacity of fourth-placed Cemex (95Mt/yr), with Holcim (218Mt/yr) and HeidelbergCement (122Mt/yr) between these extremes.1 With an impressive 659Mt/yr of capacity between them, these four accounted for just shy of half of global cement capacity outside of China.

However, as those with even a passing interest in the cement sector will know, this is no longer the case. The merger between Lafarge and Holcim and the subsequent acquisition of Italcementi by HeidelbergCement has stretched out the range of the top producers significantly. Today LafargeHolcim has around 340Mt/yr of installed capacity and HeidelbergCement 200Mt/yr. Meanwhile Cemex is still 'stuck in the 90s,' with a capacity of around 92Mt/yr following the sale of its Croatian cement assets last week. The Mexican 'giant' is now almost a quarter of the size of LafargeHolcim. What does this mean for the world's number three (excluding Chinese producers) and what might the future hold?

Well... the old adage goes that you have to move forward to stand still. However, Cemex has not moved forward over the past two years, meaning that is hasn't kept up the pace with its immediate rivals. It hasn't been able to, hemmed in by the debt that it took on from its poorly-timed acquisition of Rinker in 2007. Indeed, Cemex is looking to contract further, with aims to shed a further Euro600 - 1100m of non-core assets in 2015.2 Against improved positions at LafargeHolcim and HeidelbergCement, Cemex increasingly looks like an 'Americas specialist' rather than a full-blown multinational. A stake in Cemex LatAm Holdings is up for sale, but the sale of more cement plants may also be on the way. This is all being done to improve Cemex's investment grade rating from B-plus, four grades below investment grade.

If Cemex does have to shed further physical assets on the ground, it is very unlikely that it would chose to do so in the Americas, where it is a very major player. It is number one in Mexico, third in the US and well-postitioned in numerous growth markets in Central America. If push comes to shove, it is far more likely that it would sell assets that are further from home. These are in Europe, the Middle East and the Far East.

Cemex has 43% of its production capacity outside the Americas. Certain assets, such as those in Thailand, Bangladesh and the Philippines, may be appealing to CRH, which is already set to acquire LafargeHolcim divestments there and is known to be considering other purchases in the region.3 Cemex also owns several cement plants in better-performing EU economies like Germany and the UK. In Germany, the company has already completed a small downsizing exercise by selling its Kollenbach plant to Holcim (LafargeHolcim). Meanwhile, Cemex UK is a major player in the UK, where the Competition Commission has recently been very keen to increase the number of producers. Elsewhere, Cemex's share in Assuit Cement in Egypt could provide much needed revenue, as could its small stake in the Emirati markets.

Thinking more radically, and in keeping with the current trend of mega-mergers and large-scale acquisitions, could Cemex find itself the target of the next global cement mega-merger / acquisition? Certainly, its strength in Central and South America completely complements HeidelbergCement's lack of coverage here, making a future 'HeidelbergCemex' a potential winner.

The other option, if/when Cemex regains its investment rating, would be for Cemex to acquire or merge with a company further down the list of global cement produers. Africa is an obvious target, with rapid growth and a lack of Cemex assets at present. A foreigner buying up Dangote is probably out of the question, but PPC would be an interesting target, as would increasingly isolated Brazilian producers that could help shore up Cemex's South American position.

If the past 18 months in the global cement industry have shown anything, it is that we should expect the unexpected. It will be very interesting to see how all players, both large and small, will react to the recent goings on in the rest of 2015 and beyond.

India: Prism Cement Limited has appointed Vivek Krishan Agnihotri as a director following the resignation of the previous director. The Board has also appointed Agnihotri as the executive director of cement, effective from 17 August 2015.

Georgia: Xinjiang Tianshan Cement has recently signed an agreement with a Georgian cement company and Xinjiang Hualing Industry & Trade to establish a joint venture in Georgia.

With total investment of US$60m, the joint venture will launch a production line with 3000t/day of clinker capacity and 1.2Mt/yr of cement capacity. Xinjiang Tianshan Cement and Xinjiang Hualing Industry & Trade will control an at least a 65% stake the venture, while the Georgia-based cement company and Xinjiang Hualing Industry & Trade will jointly control a 35% stake at most.

US: Holcim (US), part of LafargeHolcim, has announced that five of its plants earned the US Environmental Protection Agency's (EPA) prestigious Energy Star.

"We are pleased that the EPA has recognised Holcim's continued commitment to environmentally sound practices by awarding five of our plants with the Energy Star Award," said John Stull, chief executive officer of Holcim (US). "Sustainability is a core component of our values and a priority for our employees at every plant and facility."

This marks the fourth time Holcim's Portland plant in Florence, Colorado and the Midlothian plant in Midlothian, Texas have received the award, while the Devil's Slide plant in Morgan, Utah has been honoured for its eight consecutive year. The Holly Hill plant in Holly Hill, South Carolina and the Ste. Genevieve plant in Bloomsdale, Missouri are both receiving the award for the sixth time.

Vietnam: Holcim is using shoes as an alternative fuel in Vientam thanks to its new solid recovered fuel (SRF) plant from shredding specialist Untha, according to Equipment World.

The new SRF plant will use waste from Vietnam's largest shoe factory once it has been delivered. It was pre-assembled and tested in Austria and is currently being shipped by sea to Holcim in Vietnam. Delivery is expected in September 2015. The SRF plant will convert the waste by using an anti-explosive Atex-specification XR3000 Cutter waste shredder with two 113kW motors, conveyor, over-band magnet, control room and water-powered fire suppression technology. The plant can process 10t of material into the 8mm, high calorific value fuel.

Ethiopia: Messebo Cement has hired Industrial Projects Service (IPS), a state-owned consultant, to conduct an assessment of the cement market around Addis Ababa. It wants to explore the feasibility of opening a grinding plant where semi-processed clinker from Tigray will be processed to produce cement.

"The project is mainly intended to minimise the transportation cost incurred from Mekelle to Addis Ababa, which is US$24.5 – 33.7/t, and hence to enable the plant to compete with existing cement plants in the city," said Kidane Tekelehaimanot, Messebo's deputy project manager. Mekelle is 770km away from Addis Ababa. The Addis plant, if opened, would receive and crush the semi-processed clinker by mixing it with additives, which account for 30% of the total amount currently transported from Mekelle. The Mekelle plant produces 83% of its 2.24Mt/yr cement production capacity.

Messebo is the second company after newcomer Habesha Cement to undertake a market study. Habesha, which has a designed production capacity of 2.5Mt/yr, has hired Waas International Consulting to assess the current and future demand and supply of cement, as well as to determine the need of for expansion. Dangote and Derba Midroc cement plants are also planning expansions, with Derba intending to double its 2.3Mt/yr production capacity.

India: The acquisition of Lafarge India's two cement plants by Birla Corporation may come unstuck. According to local media, there are questions being raised on the outcome of the deal, which is the biggest acquisition in the 96-year history of Birla Corporation.

The ownership dispute between the Birla family and the Lodhas, who currently manage Birla Corporation, could create obstacles for the deal. After the death of Priyamvada Birla in 2004, the widow of M P Birla, her will had named R S Lodha, a chartered accountant and close confidant of the family, as the heir to her entire estate which ran into billions of US Dollars. This was hotly contested by the Birla family on the legal front. Today, the late R S Lodha's son, Harsh Lodha, is the chairman of Birla Corporation. The M P Birla Group has around a 63% stake in Birla Corporation.

There are now doubts whether the Birla Corporation's deal to acquire Lafarge India's assets may be consummated, given the continued ownership dispute. However, Debanjan Mondal, a partner in Fox & Mondal, the legal counsel of Harsh Lodha, said that, "If required, appropriate shareholders resolution will be taken for the acquisition. This has nothing to do with the will dispute and it will not come in the way of the deal." Analysts have highlighted that Birla Corporation would have to raise funds to finance the transaction, requiring the mortgage of assets, which may be difficult given the ownership dispute.

Sri Lanka: Tokyo Cement has added a fifth vessel, MV Mohar, to its fleet of cement transport ships in August 2015. The ship is a 22,000t pneumatic bulk cement carrier.

"Logistics is an integral part of our business and the increase in local demand has required us to enhance our capacities not just in transportation, but manufacturing and energy generation. We are always striving to improve our business performance because doing so is Tokyo Cement's contribution to building Sri Lanka and ensuring strong, sustainable development," said Tokyo Cement Group Managing Director S R Gnanam.

With a 1Mt/yr production capacity increase in Trincomalee, the new vessel will transport cement to the Colombo Port in order to distribute more efficiently. "The cement industry is often described as a barometer of a country's march to economic development and prosperity. What we are currently seeing is a surge in demand for products and services, which is a good indicator of market confidence. Over the last three decades, Tokyo Cement has built itself up to become one of Sri Lanka's most valuable brands, with an installed capacity of over 2Mt/yr of cement, over 600 employees and US$149m in assets. Our success reflects the continuing growth of Sri Lanka and its economy," said Gnanam.

China: West China Cement's net profit plunged by 99% year-on-year to US$375,120 in the first half of 2015 as China's economic slowdown took a toll on cement demand, according to Dow Jones. West China Cement's revenue fell by 15.4% to US$264m. As for 2014, it omitted an interim dividend.

India: LafargeHolcim has entered into a letter agreement with Birla Corporation Limited, subject to approval by the Competition Commission of India (CCI), for the divestment of certain assets in India as part of the merger for US$768m. The proceeds from the sale of the divestment business will be used to further reduce debt.

The assets include Lafarge's Sonadih cement plant and Jojobera grinding plant in Eastern India, which have 5.15Mt/yr of cement production capacity. The transaction with Birla Corporation will be submitted to the CCI for approval and is subject to other regulatory approvals and customary conditions. Following the divestment, LafargeHolcim will have around 68Mt/yr of cement capacity in India.

India: Birla Corporation has witnessed a sharp drop in its first quarter profit to US$2.55m from US$15.2m a year ago. Income stood at US$119m against US$132m.

Harsh V Lodha, Birla Corporation chairman, said that poor demand in the company's major markets in the north and central regions put cement prices under severe pressure. He added that, though realisations during the quarter were very low, BCL could partially mitigate its impact on profitability by improving operational efficiencies in various areas. The resilient markets in east provided some relief. Lodha said that the company was installing equipment to set up the alternative fuel and raw material system to increase the use of alternative fuel on a continuous basis at its clinker units. This initiative to utilise agricultural waste and will be operational by the first quarter of its 2017 fiscal year, which ends on 30 June 2016.

Indonesia: Holcim Indonesia and Lafarge Cement Indonesia have sped up their merger process, slated to finish by the end of 2015, in a bid to increase the companies' market shares. The companies have remained under different management and targeted separate market segments despite the merger of their parent companies.

"We hope to finish the merger process by the end of 2015. As Holcim is listed on the bourse, we are still waiting for the permit from Bapepam (Capital Market Supervisory Agency) and KPPU (Business Competition Supervisory Commission)," said Holcim vice president of sales Juhans Suryantan.

The speedy merger process is part of Holcim's efforts to expand its share of the Indonesian cement market, which stood at 15% before the merger, after Semen Indonesia with 43.7% and PT Indocement Tunggal Prakarsa with 30%. Meanwhile, Lafarge Indonesia had a 3% market share, placing it in fifth place.

Juhans added that both product brands would stay separate after the merger. "We have not decided on the brands. We might still use our own brands for the next one or two years," he said. The brands are deemed not to overlap due to the different target markets of both companies, as Holcim has a stronger grip on Java and southern Sumatra, while Lafarge Indonesia was stronger in Aceh and northern Sumatra.

Turkey: Fosroc, an international construction chemicals group, has announced a major step in its global growth strategy with the agreement to acquire, subject to regulatory approval, a substantial majority shareholding in the Turkish market leader for cement additives, Idea Kimya.

Andre Ladurelli, CEO of Fosroc, said that the acquisition signals a highly ambitious phase of growth. "Our strategy is to continue achieving double-digit organic growth in existing businesses and enter new territories through the formation of new ventures as well as through acquisitions. The acquisition of Idea Kimya is an excellent example of this strategy, demonstrating our commitment to growth while providing a substantial platform for further development in Turkey and its neighbouring countries. Our attitude is that we want to seize the day, lead the market and out-class our rivals on product, expertise and service," said Ladurelli.

Having recently completed new ventures in Myanmar, Vietnam and Iraq and with a host of other projects currently being developed, Ladurelli cited the example of Kenya as one of Fosroc's key future strategic ventures, through which it aims to open up the East African market. Fosroc's sales in the first half of 2015 increased in line with expectation. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 18% year-on-year.

"The integration of Idea Kimya into the Fosroc Group will create new high growth opportunities. Fosroc will provide a thorough range of construction chemicals products and solutions, with the support of their global organisation," said Hakan Gulseren, managing director and one of the founders of Idea Kimya.

Nigeria: The Cement Company of Northern Nigeria (CCNN), part of BUA Group, has declared a post-tax profit of US$9.64m for the 2014 financial year, some 23.1% higher than in the 2013 financial year.

CCNN chairman, Abdulsamad Rabiu, said that despite lower cement sales recorded in the last quarter of 2014 mainly due to pockets of unrest in CCNN's business markets, the company's focus on efficiency and strategic investments resulted in steady growth during the period. From a high of US$13.9m in 2013, CCNN's production and operational expenses significantly declined to US$12.1m in 2014. CCNN also announced plans to expand its cement plant to 2Mt/yr of cement capacity with a US$241m investment.

Mexico/US: Grupo Cementos Chihuahua (GCC) has announced plans to increase its sales in the US and reach a double digit rate by 2018. The company has estimated 6% income growth in the Mexican market and 8% growth in the US by the end of 2015. GCC has predicted that the cement sector in Mexico will slow down in the upcoming years. At present, 70% of the company's revenue comes from US, while 30% is obtained in the domestic market. GCC also aims to increase its production capacity in the US from 4.6Mt/yr to 5Mt/yr in the mid-term.

India: The India Cements has posted a net profit of US$6.15m for the quarter that ended on 30 June 2015 when compared with a net loss of US$455,297 in the same period of 2014. This is the second successive quarter that it has reported a net profit. The India Cements attributed the good performance to better prices for cement bags and lower expenses as a consequence of cost-control measures.

The India Cements' earnings before interest, taxes, depreciation and amortisation (EBIDTA) grew to US$30.6m from US$25.5m in the same quarter of 2014. Net sales for the quarter fell to US$165m from US$189m in the same period of 2014 as cement sales fell to 2.08Mt from 2.39Mt in the 2014 quarter.

"It was a strong quarter and price stabilisation is slowly taking place. Overall, we have turned a corner. Our next task is to the stabilise performance and improve the bottom line through a combination of cost control measures and increases in volume," said N Srinivasan, vice chairman and managing director of the company.

Srinivasan said that cement demand in the south of India continued to be under pressure with negative growth. With the huge excess capacity in the region, utilisation levels remained at less than 60%, compared with the 70% levels seen for India as a whole. Srinivasan said that he hoped that Seemandhra and Telangana would spur demand to help improve utilisation levels.